United Bank for Africa (UBA) has reported a robust financial performance for the half-year ended June 30, 2024, reflecting significant growth across key metrics despite challenging economic conditions.
According to the half year results, UBA’s total assets surged by 37.2% to reach N28.3 trillion, and customer deposits grew by 34% to N23.2 trillion. The bank recorded gross earnings of N1.371 trillion, a 39.6% increase from N981.77 billion in the same period in 2023.
In a statement on Monday, announcing the impressive results, the bank’s Head of Media and External Relations, Ramon Nasir, Head, Media and External relations, highlights that the audited financials released to the Nigerian Exchange Limited (NGX), showed that the bank recorded double-digit growth in its gross earnings and operating incomes.
Interest income grew substantially, up 134.3% to N1.003 trillion, while profit before tax (PBT) was N402 billion, slightly down from N403 billion in 2023. Profit after tax (PAT) declined to N316 billion from N378 billion. Nevertheless, shareholders’ funds rose by 47% to N2.99 trillion.
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To reward shareholders, UBA declared an interim dividend of N2.00 per share, a 300% increase from the N0.50 per share paid in the same period last year. UBA’s Group Managing Director, Oliver Alawuba, highlighted the bank’s focus on sustainable growth in its balance sheet and digital banking services.
The GMD said, “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.”
“The Group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143% YoY to N675billion”.
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United Bank for Africa’s (UBA) plans for the rest of 2024 are centered around enhancing customer experience and operational efficiency. Group Managing Director Oliver Alawuba highlighted the bank’s commitment to expanding its customer base through significant investments in technology, data analytics, and product innovation. This aligns with UBA’s goal to offer improved value and service across its global footprint.
Ugo Nwaghodoh, Executive Director of Finance & Risk, expressed satisfaction with UBA’s operational achievements, particularly in cost optimization, with the cost-to-income ratio stabilizing around 50%. The bank is focused on further reducing foreign currency-denominated costs, robotizing operations, and leveraging artificial intelligence to streamline processes.
In terms of risk management, Nwaghodoh emphasized that the Group is prioritizing the management of credit, operational, cyber, and information security risks, in line with a moderate risk appetite and sustainability goals. UBA also aims to bolster its share capital, preparing for regulatory requirements in Nigeria and other regions where it operates.
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With a presence in 20 African countries and key global financial hubs, UBA is committed to driving financial connectivity through retail, corporate banking, cross-border payments, and trade finance solutions.